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INVESTORS in Sundaram Select Focus can stay invested despite the sharp run-up in the NAV in the last three months. The fund has been aggressively managed with a frequent churning of the sector-specific and stock exposures.

At the end of May, the fund had 43 per cent exposure in banking stocks and a 11 per cent cash position. Both have been cut fairly sharply.

The portfolio wears a more diversified look now with banking and metals accounting for 36 per cent of assets. Cash position has declined despite substantial inflows. The following were the key changes to the portfolio in June:

Stocks in: Cipla, Maruti, ITC, Grasim, Tata Steel, Larsen & Toubro, Tata Power, Oriental Bank of Commerce and SAIL.

Enhanced exposures: Holdings in Hindalco, Bharat Forge, BHEL, State Bank of India, Hindustan Petroleum (HPCL), Gujarat Ambuja Cements, Tata Motors, Reliance Industries and Punjab National Bank were ramped up.

Stocks out: A host of banking sector stocks, such as Union Bank of India, Andhra Bank, Bank of India, and Jammu & Kashmir Bank, were moved out of the portfolio as part of a profit-booking exercise.

Other stocks where holdings were sold out completely are Neyveli Lignite, Zee Telefilms, National Aluminium, Siemens, ABB and BHEL.

Pared exposures: Holdings in Canara Bank were cut.

Top ten holdings: State Bank of India, Gujarat Ambuja Cements, HPCL, ITC, Oriental Bank of Commerce, Tata Motors, BHEL, Tata Steel, SAIL and Reliance Industries.

Sector changes: Holdings in banking sector stocks were cut sharply. The sector weight has declined from 43 per cent to 21.4 per cent. Engineering sector exposures were also cut. Holdings were scaled up in metals, construction materials, pharmaceuticals and tobacco.

Fund flows: The fund received sizeable inflows, with net assets rising about 63 per cent to Rs 23.9 crore. The NAV was up just 1.4 per cent in June.

: The fund was launched in July 2002 and is managed by Mr Anand Radhakrishnan. The minimum amount is Rs 5,000 with an entry load 2 per cent for investments of less than Rs 25,000. There is no exit load.

S. Vaidya Nathan

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